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Overview
| Commercial Packages
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Business Owners Policy
| Business Auto
| Umbrella Liability
:: ISSUE 1, APRIL 1998 Table of Contents
Welcome to the W.E. Davis Insurance Agency's first issue of Commercial Exposures. Like our newsletter for Personal Home, Auto and Life Exposures, this resource will provide you with up to date information regarding all areas of business risk management. We promise to be as brief as possible, so if a particular area catches your interest, we usually have additional resources we can fax or mail to you. Please call, fax or write us to let us know how you like Commercial Exposures and how we can improve it. Thanks! Business auto exposures can cost your company plenty if not properly handled. If you own or rent business vehicles, it is your responsibility to let your employees know the circumstances in which they have permission to drive company vehicles. For example, you may allow employees to drive only on company business, or to include to and from work. But do you want company vehicles driven to the grocery or the movies? Even worse, do you want your company car driven by a 16 year old son of an employee? If you do not spell out the specific permissive uses, the above is probably going on. Why is this important? Your business auto insurance premiums can be kept lower if accidents from non permissive drivers do not occur. In addition, you will not have disgruntled employees if a loss involving a spouse or child while driving a company vehicle is questioned. In order to effectively manage this exposure, you should have a clear description of permissive uses of company vehicles in your Employee Manual. Have each employee read and sign a form acknowledging they have read the new rule. Our office has sample guidelines which we would be happy to provide to you. Common Commercial Insurance Exclusions - Pollution Each issue of Commercial Exposures will have some recurring articles. Common Commercial Exclusions will be one. Pollution is a typical exclusion not only under General Liability policies, but also with auto policies. The basic liability policy does provide some limited coverage from a hostile fire; i.e. a fire causes pollutants to escape. But that is about the extent of the coverage. Many polices have an Absolute Pollution Exclusion added. This removes any coverage for a pollution loss, including a hostile fire. Pollutants include any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste which includes materials to be recycled, reconditioned or reclaimed. Therefore, if you apply any material like a glue, cleaning liquid, etc. which has a smell (vapor) and it makes someone sick, your liability policy may not cover the loss. There are additional coverage endorsements that specifically cover fumes. Give our office a call if you would like to verify if the coverage is already included. The tight labor market makes it harder for small employers to compete for quality staff. Large businesses have a huge advantage by being able to offer economies of scale which produce more and better benefits. These benefits can make the difference between a qualified person choosing employment with a large competitor rather than a small business. Professional Employer Organizations (PEOs) are helping small businesses level the playing field. Previously known as employee leasing, PEOs have advanced in professionalism and standing with businesses they serve and the regulators who watch over them. Aligning your business with a PEO will allow you to offer benefits to your staff previously reserved for Fortune 500 companies. Section 125, 401 savings, employee assistance (EAP), pre-paid legal plans and discount programs are just some of the additional benefits which become yours when aligning your company with a quality PEO. Our office has researched the PEO industry as well as local PEOs and we believe they offer valuable services never before available to small businesses. If you are interested in exploring the advantages of a PEO relationship, give us a call. Rental Reimbursement for Business Autos If you own or lease commercial vehicles and wonder how you would replace one while it was being repaired due to an accident, look no further! Your commercial auto policy can include rental reimbursement coverage in the same way that a personal auto policy does. However, most business auto policies do not include rental reimbursement. This is because many commercial vehicles are specialty type and difficult to replace. In addition, the maximum daily allowance is $50, which would not cover the cost of many expensive commercial vehicles. Most of our clients do not add this coverage, but it is available by calling our office. Annual premiums are around $50 per vehicle for the coverage. Our agency is pleased and proud to welcome William B. Mitchell, CPCU to our staff. Bill has had a long and successful career in commercial insurance risk management and will be working with our agency in developing new business accounts. Bill has a wealth of knowledge in areas like Professional Liability and Contractors, including trades like mechanical and electrical as well as general contracting. Bill also brings the agency access to additional property/casualty markets including Indiana Insurance, American States, CNA and Merchants Insurance Companies. He also has another claim to fame. Bill is married to our long time commercial service representative, Barb Mitchell. Year 2000 Problems, Had Enough? Everyone seems to be talking about computer upgrades to solve their year 2000 problems. If a new system purchase or upgrade is in your plans, think about a lease purchase for the new equipment. Our office represents CFC Leasing company which can provide equipment leasing including computers, business equipment and even vehicle fleets! A lease purchase plan provides the tax advantages of leasing while providing affordable and guaranteed buyout provisions on the back end. If you are thinking about new equipment, think of us for your leasing needs |
